Fort Walton Beach — Fiscal Year 2023-24 Adopted Budget — reading text

However, for purposes of budgeting, staff has combined small projects into a CIP when collectively they relate to an overall improvement program or project for a facility or system. For example, the repair of bleachers, batting cages, and lighting at the Softball Complex may be part of a CIP for the renovation of the facility, even though individually the specific items do not meet the CIP threshold. CAPITAL PROJECT There are two types of capital expenditures: infrastructure projects and operating programs. Capital projects are addressed in the CIP and generally include major fixed assets or infrastructure with long-term value, such as buildings, roads, and parks. Capital project costs include all expenditures related to planning, design, equipment, and construction and may involve some form of debt financing. CAPITAL PROJECTS FUND Accounts for the planned capital improvements to municipal facilities and infrastructure construction. CASH BASIS A basis of accounting under which revenues are recognized when cash is received and expenses are recognized when cash is paid. CODE ENFORCEMENT BOARD (CEB) Enforces the provisions of the City code and ordinances (i.e. building maintenance, grass height, signage). The board has the authority to impose administrative fines and other non- criminal penalties. The seven members of the board must be residents of the City of Fort Walton Beach and are appointed to three-year terms. The members are limited to two successive terms. The board meets the second Wednesday of each month at 4 PM in the Council Chambers at City Hall. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Accounts for funding from the Federal government to provide services to the citizens with a financial need. These services include providing funding to area non-profit social service organizations, rehabilitating single-family homes, and clearing dilapidated structures. COMMUNITY REDEVELOPMENT AGENCY (CRA) A public organization that works to improve a specific area (called a Community Redevelopment District) in a community through redevelopment and economic investment. The targeted area must meet the state definition of "slum and blight," which includes 14 conditions such as deteriorating buildings, lack of parking and sidewalks, inadequate roadways, faulty lot layout, flooding problems, and outdated building patterns. COMMUNITY REDEVELOPMENT AGENCY (CRA) BOARD Oversees redevelopment projects and recommends infrastructure improvements within the CRA district. The board endeavors to implement specific projects to encourage redevelopment within the CRA district. 211 COMMUNITY REDEVELOPMENT AGENCY (CRA) FUND A “discretely presented component unit” that accounts for the revenues and expenditures associated with the CRA. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) An audited financial report prepared annually per Florida State Statute 218.32. COMPREHENSIVE LAND DEVELOPMENT PLAN A comprehensive plan which “guides public capital investments, other public fiscal policies, operating policies of the Fort Walton Beach government, and the future use of land in the City” per the Local Government Comprehensive Planning and Land Development Regulation Act (Chapter 163, Florida Statutes). The City’s comprehensive plan may be amended up to twice a year and must be evaluated and updated every five years. The plan must address the following elements: Future Land Use; Traffic Circulation; Sanitary Sewer, Solid Waste, Drainage, Potable Water, and Natural Groundwater; Parks, Recreation, and Open Space; Aquifer Recharge; Capital Improvements; Coastal Management; Conservation; Intergovernmental Coordination; and Housing Element. CONNECTION FEE A fee charged to join or to extend an existing utility system. CONTINGENCIES Funds that do not have an identified purpose and are budgeted for unanticipated or emergency purchases or repairs. The State of Florida allows up to a maximum of 10% of anticipated revenues to be allocated toward contingencies. DEBT CAPACITY The amount of debt that can be repaid in a timely manner without forfeiting financial viability. Includes the determination of the appropriate limit to the amount of long-term debt that can remain outstanding at any point of time, as well as the total amount of debt that can be incurred. DEBT RATIO A financial ratio that indicates the percentage of assets that are financed via debt; the ratio of total debt (current and long-term) and total assets (current, fixed, and other). DEBT SERVICE FUND Accounts for the principle and interest payments of General Fund debt. DEPARTMENT A distinct operating unit within the City, normally contained within one fund, that may or may not be subdivided into divisions. DEPRECIATION A portion of the cost of a fixed asset, other than waste, charged as an expense during a particular period. DISCRETELY PRESENTED COMPONENT UNIT In accordance with GASB 14, the City (primary government) is financially accountable if it appoints a voting majority of the component’s governing board and (1) it is able to impose its will on the organization or (2) there is a potential for the organization to provide specific financial benefit to or impose specific financial burden on the City. In addition, component units can be other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's 212  financial statements to be misleading or incomplete. DIVISION A specialized component of a department. ENTERPRISE FUND Accounts for business-type activities of a government that are financed in whole or part by user fees, such as utilities, mass transit, and airports. EQUITY IN POOLED CASH Each fund’s proportionate share of the City’s investment and checking accounts is called equity in pooled cash. The City commingles each fund’s resources for practical and investment purposes, which is permissible by generally accepted accounting principles. EXPENDITURE A decrease in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service, capital outlays, inter- governmental grants, entitlements, or shared revenues. EXPENSE A use of assets or incurrence of liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations. FIDUCIARY FUND Type of fund used to account for assets not available to support the government’s programs that are held in a trustee or agent capacity. Includes private-purpose trust, pension and other employee benefit trust, investment trust, and agency fund types. FISCAL YEAR The City’s budget year, which runs from October 1 to September 30. FORFEITURE An automatic loss of cash or other property as a penalty for not complying with legal provisions and as compensation for the resulting damages or losses. This term should not be confused with confiscation. The latter term designates the actual taking over of the forfeited property by the government. Even after property has been forfeited, it is not considered confiscated until the government claims it. FRANCHISE FEE A fee levied in proportion to gross receipts on business activities of all or designated types of businesses. FULL-TIME EQUIVALENT (FTE) One position funded for a full year. Either one full-time position funded at 40 hours/week for 52 weeks/year or multiple part-time positions whose funding equates to 40 hours/week for 52 weeks/year. FUND A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE 213  The difference between current financial assets and liabilities accounted for in a governmental fund; the net available financial resources externally or internally constrained as to use. Might be better described as a measure of liquidity rather than net worth. It attempts to measure how much would be left over at the end of the current fiscal year for the subsequent fiscal year’s budget were the government to budget in accordance with generally accepted accounting principles (GAAP). GASB 34 An accounting standard issued by the Governmental Accounting Standards Board applicable to all state and local governments. Compliance with GASB 34 is necessary in the preparation of financial statements in accordance with Generally Accepted Accounting Principles. GENERAL FUND Accounts for primarily unrestricted resources and those resources not requiring reporting elsewhere. This fund exists from inception of the government throughout the government’s existence. GENERAL OBLIGATION BOND A bond for which payment is pledged based on the full faith and credit of the issuing government. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) A uniform accounting and financial reporting system used by the City to accurately track all government expenditures, revenues, assets, and liabilities. GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) A professional association of state and local finance officers that has served the public finance profession since 1906. GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) An organization that establishes and improves the standards of state and local governmental accounting and financial reporting to produce meaningful information for users of financial reports. GOVERNMENTAL FUND Type of fund through which most governmental functions typically are financed and accounts for taxes, grants, and similar resources. Includes general, special revenue, capital projects, debt service, and permanent fund types. May be referred to as "source and use" funds. IMPACT FEE Imposed on new construction in order to support specific new demands on a given service (i.e. streets, water lines, sewer lines, parks, police, fire). IMPROVEMENT OTHER THAN BUILDING An attachment or annexation to land that is intended to remain attached or annexed, such as sidewalks, trees, drives, tunnels, drains, and sewers. Sidewalks, curbing, sewers and highways are sometimes referred to as betterments, but the term “improvements” is preferred. INVESTMENT Most commonly, securities and real estate held for the production of revenues in the form of interest, dividends, rentals, or lease payments. The term does not include fixed assets used in government operations. 214 LAW ENFORCEMENT TRUST and TRAINING FUNDS (LETFs) The Law Enforcement Trust Fund accounts for funds received from the sale of confiscated property that are used for drug enforcement. The Law Enforcement Training Fund accounts for funds received from court fines that are used for additional Police Department training. LEGAL DEBT LIMIT The State of Florida does not place a legal limit of debt on the municipalities. For general obligation debts greater than one year, the City must conduct a voter referendum process. Special revenue debt is pledged by a specific revenue source and limited by available revenue; therefore it is not subject to voter referendum. LEGISLATIVE COMMITTEE ON